Or you can craft fleet cost reduction opportunities right from your vehicle life cycle
Call it what you may – sleight of hand, wizardry, magic… With the challenges and concerns your fleet is facing today as a result of the pandemic, you may feel like you’re going to need some impressive tricks to rebound.
Don’t worry, no illusions required. Just some solid, short-term strategic maneuvers to reduce your operating costs.
You can easily use the vehicle life cycle as a guide to organize your strategy. Think in terms of buying the vehicle, driving the vehicle, servicing the vehicle, and finally selling the vehicle at the end of its useful life. If you create a goal to materialize two or more opportunities in each phase, you’ll end up with more than a half-dozen new strategies – without any hocus pocus.
Here are some idea starters:
NAFA has some great resources to help fleet managers cope during the pandemic, including a COVID-19 Resource Center and some enjoyable virtual chats where you can stay connected with your peers.
Hertz Global Holdings Inc. has filed Chapter 11, with plans to halt its purchase of new cars and light trucks for the foreseeable future, a move that will contribute to the sharp decline in the American market this year.
One uncertainty is how the bankruptcy filing will impact the used-car market. By slashing new car orders, Hertz could reduce the amount of near-new products flowing back onto dealer lots in the year or so ahead.
“Hertz has over a century of industry leadership and we entered 2020 with strong revenue and earnings momentum,” Hertz President and CEO Paul Stone said in the company’s statement. “With the severity of the COVID-19 impact on our business, and the uncertainty of when travel and the economy will rebound, we need to take further steps to weather a potentially prolonged recovery.”
All of Hertz’s businesses in the U.S. and abroad, including its Hertz, Dollar, Thrifty, Firefly, Hertz Car Sales, and Donlen subsidiaries, remain open and serving customers.
Read the article at The Detroit Bureau.
Now is the time for vendors and trusted partners to keep supporting clients - to the best of their abilities, and with lots of empathy.
Oversupplied Crude Oil Market and COVID-19 Pandemic Travel Restrictions Lead to Sharp Decline in Cost of Fuel
Motus today released its 2020 Summer Fuel Outlook Report. This report highlights key data related to fuel price fluctuations with a look towards how these changes will impact the summer driving season.
The report reveals an oversupplied crude oil market, coupled with the COVID-19 pandemic, has led to an expected 6.5% decrease in global oil consumption in 2020. As a result, Motus anticipates national fuel prices to decrease by 35% on average compared to the past four years.
“The price of fuel this summer will be very different from what we’ve seen in recent years due to decreases in both oil prices and travel activity. While fuel consumption and demand will increase as the country reopens and people resume travel, it’s unlikely we’ll see the same mileage levels as past summers,” said Ken Robinson, market research analyst for Motus.